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You're getting your error message because you're trying to install Ubuntu 13.04 using Wubi and Ubuntu 13.04 does not support Wubi. However the Long Term Support version of Ubuntu, Ubuntu 12.04, does support Wubi. Ubuntu 12.04 is supported by updates until April, 2017.

For more information about installing Ubuntu from within Windows using Wubi visit the Ubuntu Wubi Installation Instructions. This is an illustrated seven-step tutorial about how to install Ubuntu with the Wubi Windows installer.

Before you install Ubuntu you should think about what type of installation, whether it is using Wubi or else a dual boot installation of Ubuntu alongside Windows 7, would be most suitable for you. This will help you to focus on learning more about what type of installation you have decided upon before you commit yourself to doing the installation.

In particular, for more information about solving the black screen problem that you got when trying to install Ubuntu from the DVD, take a look at the answers to this question.

While technically, Ubuntu 13.04 does not support Wubi (it was announced in the Release notes and all), a working wubi.exe was shipped with it. So it does in fact work the same as all previous releases. 12.04 is the only one advertised on the main ubuntu.com/download/desktop/install-ubuntu-with-windows site (where it also erroneously states that it is not available)
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bcbcSep 29 '13 at 23:22